Minimum Value Standards

To meet the requirements of the Affordable Care Act, health coverage provided by employers must cover at least 60% of an employee’s health care costs in a given year. For example, if an employee has $1,000 in health care expenses, the plan must cover at least $600 and the employee is responsible for paying the remainder through deductibles, co-pays and co-insurance. Large employers (50 or more employees) who do not meet the minimum value standards are subject to tax penalties.

 

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